(ID# 225) This A/R option in Options Configuration determines how the system calculates the balance subject to finance charge.
A = The balance subject to finance charge is the adjusted balance of the account. It is calculated by taking the past due balance at the end of the billing cycle and subtracting any payments and credits.
I = The balance subject to finance charge is the average daily balance including any purchases made during the present billing cycle. It is calculated by taking an account's beginning balance each day during the billing period, adding any new purchases, and subtracting any payments and credits. This sum is then divided by the number of days in the billing cycle.
P = The balance subject to finance charge is the previous balance; that is, the amount owed at the beginning of the current billing cycle. Payments and credits received during the billing cycle are subtracted.
X = The balance subject to finance charge is the average daily balance excluding any purchases made during the present billing cycle. It is calculated by taking an account's beginning balance each day during the billing period, and subtracting any payments and credits. This sum is then divided by the number of days in the billing cycle.